AmInvestment starts coverage on Crest Builder, fair value RM1.83

TheEdge Thu, Mar 12, 2020 09:23am - 4 years View Original


KUALA LUMPUR (March 12): AmInvestment Bank Bhd Research has initiated coverage on Crest Builder Holdings Bhd (CBHB) at 78 sen with a fair value of RM1.83 and said it expects the company to register core net earnings of RM20 million, RM21.8 million and RM28.1 million for FY20, FY21 and FY22.

In a note today, the research house said CBHB’s income is mainly derived from 4 segments: (i) construction; (ii) property development; (iii) property investment & management; and (iv) concession arrangement.

“We believe the CBHB’s medium-term outlook is positive, anchored by several construction wins in the past few months while the upcoming launches will be one of its major earnings contributors beyond FY21.

“CBHB also has stable income from a concession arrangement,” it said.

Moreover, AmInvestment said the value of CBHB’s investment properties deserves more attention.

“The stock is currently trading at an undemanding forward PER of 4.6x–6.4x for FY20–FY22.

“This offers a potential upside of more than 100% and a dividend yield of 4.5%,”it said.

 

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